Timken Sees Second-Quarter Profits Slip
07/31/2015 - The Timken Company saw its second-quarter earnings slide 41 percent to $36.7 million, partly on account of market-related declines in its mobile industries segment.
For the quarter, which ended June 30, the Ohio-based company posted overall net sales of $728 million, down 8 percent from the same quarter last year.
Its mobile industries segment reported second-quarter sales of $388.6 million, down approximately 13 percent from the same period a year ago. About 5 percent was attributable to currency, and the remainder was largely due to declines in aerospace, agriculture and automotive, the company said, adding that the decline was partially offset by continued growth in rail.
Its process industries segment reported sales of $339.4 million, down 1 percent from the prior year. Excluding currency impact of about 5 percent, sales were up almost 4 percent, the company said. Sales were driven by organic growth in the wind energy and military marine sectors, higher industrial services revenue and the benefit of acquisitions. This growth, however, was partially offset by lower industrial distribution demand driven by weakness in metals, mining and oil and gas, it said.
“During the quarter, demand remained weak in many of our markets. As a result, we are reducing our outlook for the balance of the year, now expecting our top line to be slightly off from the first half,” said Timken President and CEO Richard G. Kyle said in a statement.
“We are working to accelerate the impact of our cost-reduction initiatives, and expect to generate second-half earnings comparable to the first half.”
More details on The Timken Company’s earnings are available by clicking here.
Its mobile industries segment reported second-quarter sales of $388.6 million, down approximately 13 percent from the same period a year ago. About 5 percent was attributable to currency, and the remainder was largely due to declines in aerospace, agriculture and automotive, the company said, adding that the decline was partially offset by continued growth in rail.
Its process industries segment reported sales of $339.4 million, down 1 percent from the prior year. Excluding currency impact of about 5 percent, sales were up almost 4 percent, the company said. Sales were driven by organic growth in the wind energy and military marine sectors, higher industrial services revenue and the benefit of acquisitions. This growth, however, was partially offset by lower industrial distribution demand driven by weakness in metals, mining and oil and gas, it said.
“During the quarter, demand remained weak in many of our markets. As a result, we are reducing our outlook for the balance of the year, now expecting our top line to be slightly off from the first half,” said Timken President and CEO Richard G. Kyle said in a statement.
“We are working to accelerate the impact of our cost-reduction initiatives, and expect to generate second-half earnings comparable to the first half.”
More details on The Timken Company’s earnings are available by clicking here.
The Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world.
